KVORUM
aaveSource: Aave governor v2 · #406

Increase GHO Borrow Rate 100 bps to ~6.41% on Aave V3

executedDec 17, 2023, 11:44 PM UTCby570x57ab…2922

01Summary

AISummary by Kvorumclaude-haiku-4-5

Proposal to increase GHO stablecoin borrow rate from 5.22% APR to 6.22% APR (with discounted rate at ~4.35% APR) to restore the GHO peg, which remains outside the target 0.995-1.005 range. ACI may continue incremental 100 bps increases every 7 days up to 9.5% if peg issues persist.

Type
parameter change

Key changes

  • Increase standard GHO borrow rate from 5.22% APR (~5.35% APY) to 6.22% APR (~6.41% APY)(high)
  • Update discounted GHO borrow rate to ~4.35% APR (~4.45% APY)(high)
  • Authorize ACI to make up to 100 bps incremental rate increases every 7 days up to maximum 9.5% APR if GHO monthly average price stays outside 0.995-1.005 range(high)

Notable concerns

  • GHO peg remains outside target range despite previous AIP-381 increases
  • Cumulative rate increases could reach 9.5% APR, which may significantly impact borrowing costs for GHO users
ContractsAaveV3EthereumGHO
Generated by Kvorum
model: claude-haiku-4-5
provider: anthropic
profile: anthropic-fast-v1
prompt: v1.0
generated: 2mo ago
Read the description ↗

02Description

183 words

Simple Summary

This AIP proposes an increase in the GHO borrow rate from 5.22% APR to 6.22% APR to support the GHO peg restoration and align borrowing costs with market rates.

Motivation

AIP-381 allows for 100 bps increases in the GHO borrow rate every 7 days while days up to 9.5% APR if the monthly average price of GHO stays outside a 0,995<>1,005 price range. While the peg has improved, it is still outside of the target range. This AIP continues with further increases of the GHO interest rate aligned with the previous proposal.

Specification

  • Current Borrow Rate: 5.22% APR - ~5.35% APY
  • Proposed Borrow Rate: 6.22% APR - ~6.41% APY
  • New Discounted Borrow Rate: ~4.35% APR - ~4.45% APY

ACI will continue with up to 100 bps incremental increases every 7 days if required up to 9.5% if the monthly average price of GHO stays outside a 0,995<>1,005 price range.

References

Copyright

Copyright and related rights waived via CC0.

03Mismatch analysis

AIMismatch analysis by Kvorumlow confidenceclaude-sonnet-5
Consistent

Generated by Kvorum
model: claude-sonnet-5
provider: anthropic
profile: anthropic-strong-v1
prompt: v1.0
generated: 2mo ago
Review the decoded actions ↗

04Actions

1 total
#0forwardPayloadForExecution((uint256,uint8,address,uint40))chain 0x1
Target
0x9aee…2bc7
Value
0 wei
Function
forwardPayloadForExecution((uint256,uint8,address,uint40))
Arguments
{
  "0": [
    "1",
    "1",
    "0xdAbad81aF85554E9ae636395611C58F7eC1aAEc5",
    "37"
  ]
}
Calldata

05Tally

Summed from votes

Voters12
VP participating536.6K
Outcome (current)For
Current support100%

06Voters

12 total

No votes recorded yet.

07Forum

No forum thread is confidently linked to this proposal.